Open-source business models are booming in the software industry, a rapid rise that has some experts wondering if it's a bubble that will burst.

Venture capital firms are pouring more money into start-ups that adhere to open-source practices, such as giving away technology for free. That rush could result in an investment bubble, similar to that seen in the early days of the Web, several industry executives cautioned at the Open Source Business Conference last week.

For an open-source business to work well, a start-up needs a number of attributes that a closed-source software company doesn't, executives said.

Doubled edged sword; unless your company is not growing and expanding in the next 3 to 5 years, it would be difficult to retain "the brains" who make changes over time only to find out no one in the organizaton knows where/how to get the records.